Hey all, I am considering a 4000 sqft 2 family house with a full basement that I am looking to turn into an additional legal unit.

Relax, you're fine.As with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the same individuals in an official capacity (e.g.

On most of our rehabs, we add SQFT with an addition or by closing in a garage or carport (perfect example here: https://www.biggerpockets.com/forums/311/topics/55...).

Honestly, it's been a great property to own so far (I know the time is limited)  and the current tenants, on top of paying their own utilities, handle a lot of their own maintenance, too.As an investor I'm in full acquisition mode and looking to acquire additional properties, deal permitting, and scale up swiftly. 

These are professionals with additional training and a stricter code of ethics.

@Jared F.You should consult an attorney when it comes to asset protection.A couple questions you want to ask the syndicator is how the entity is structured.If the entity is structured as an LP or an LLC - you are likely a non-managing member or a limited partner.So the question you would then ask the attorney is if you have additional protection investing as a limited partner/non-managing member in your individual names or as an LLC.I have seen individuals invest hundreds of thousands of dollars in syndicated deals.

Additionally I would tell them that since they are good tenants they can stay at your new rental rate, what ever your usually annual increase is, and that they will continue on a M2M since they are such great tenants. 

I am looking to up my portfolio in the Bristol area by purchasing additional multis (preferably 3+ units).

@Jordan LeithartIf you want to pm me I can provide you some additional info. 

My sense is there's a reason for that.I'd be a bit concerned that some type of failure could result in water damage, in addition to the risks that you mentioned.